Kessler on Hedge Fund Principles

My friend Andy Kessler has a great post up on the NY Times site laying out some guiding principles of being a successful hedge fund manager. It all revolves around “working hard to stay shallow”:

  • Don’t believe in anything.
  • Let the world happen and then pass judgment.
  • Bias leads to disaster.
  • Be emptyheaded and fleet of foot.
  • Change your mind often.
  • Observe and critique, 24/7.

These principles apply to a lot more things running and a hedge fund, and they’re great stuff.

Related posts:

  1. Hedge Fund Assets vs. Mutual Funds Assets
  2. Analyst –> Hedge Fund Manager –> PR Guy?
  3. The Hedge Fund Bubble
  4. How Barclay’s Reshaped the Hedge Fund Business
  5. House Tours in Hedge Fund Land

Comments

  1. Noel says:

    You need to be a subscriber to New York Times Select to view Andy’s article, but if you wait a few days you can read it for free on http://www.andykessler.com/andy_kessler/

  2. tt says:

    I’ve never understood people who like these kinds of lists. It’s the same with people who read self help books; whether they be dieting or real estate success strategies. And the reason is I don’t believe anyone who was unsuccessful in these pursuits before reading them becomes successful after they read these things. I bet if you could measure it the affect would be a big zero.
    Did Gates, Sergey & Page, Lynch, Simons, etc. becomes successful because of some bullet pointed list or self help book? No. Not ever in the history of the universe.

  3. Franklin Stubbs says:

    Take a chill pill pardner. It’s food for thought, not the rosetta stone. You’re supposed to come away with a “hmm,” an “interesting” or maybe an “a-ha!,” not Glory Hallelujah.

  4. Zbignew says:

    Dude, that is totally not true. Long or Short Capital ran the best list ever on becoming a Billionaire:
    http://longorshortcapital.com/four-simple-steps-to-becoming-a-billionaire.htm
    1. Take outrageous risks with extremely high upside.
    2. Be the 1 out of 500 million for whom it pans out. This one is key so focus on it.
    3. Attribute your wealth creation to your own hard work, your own genius and the power of your business plan. Be sure to stress how your wealth was singularly made possible by your unique endowment of elbow grease, street smarts, common sense, all of which your competitors obviously lacked (proven by how poor they are compared to you).
    4. Buy a mega yacht and/or athletic team.

  5. Dano says:

    “It’s food for thought”
    Ha. You remind me of those damn colleagues who forward emails of data with “Thought this was interesting” at the top.

  6. Franklin Stubbs says:

    “You remind me of those damn colleagues who forward emails of data with “Thought this was interesting” at the top.”
    Umm, if you don’t like quirky data and offbeat perspectives–i.e. food for thought–then why are you reading a blog dedicated to just that?
    Do you routinely eat in restaurants where you don’t like the food?

  7. Dano says:

    “Do you routinely eat in restaurants where you don’t like the food?”
    No. Why do you ask?